The world of gaming and casino stocks is all about growth. Investors are looking for companies that can offer immediate growth opportunities rather than long-term promises. According to Jefferies equity analyst David Katz, companies like Red Rock Resorts and Churchill Downs are leading the pack in terms of both profits and stock prices.
While companies like Caesars and MGM Resorts still have positive investor returns, the real focus is on companies that are showing tangible growth in the present. Red Rock and Churchill are currently selling at higher valuations compared to their historical averages, thanks to their ongoing growth projects and expansion plans.
On the other hand, companies like Wynn and MGM have ambitious growth projects in the pipeline, such as new resorts in the UAE and Japan. However, these projects are not expected to materialize until several years down the line, which is why investors are more interested in companies that can deliver immediate results.
Light & Wonder is another company that is showing impressive growth in terms of earnings per share, with projections set to rise significantly in the coming years. This kind of instant gratification is what investors are looking for in today’s market.
While companies like Golden Entertainment and Boyd Gaming offer strong value metrics and dividends, they lack significant near-term growth plans. Their focus is more on incremental improvements rather than transformative projects that can drive stock prices higher.
In the fast-paced world of casino stocks, investors are looking for companies that can provide substantial growth opportunities right now. While steady and dividend-paying companies have their place in the market, the current trend is all about needle-moving growth and tangible results.
